The Reserve Bank of India decided to stop issuing fresh licences for Full-Fledged Money Changers (FFMCs) and replace the framework with a new Forex Correspondent Model. Under the revised structure, authorised dealers (banks) can appoint forex correspondents — including non-bank entities — to expand retail foreign exchange services to underserved areas. Existing FFMC licences will continue to be honoured. This mirrors the Business Correspondent (BC) model used to expand banking outreach.
Economy
RBI Stops Fresh FFMC Licences; Introduces New Forex Correspondent Model for Wider Retail FX Access
Key Points
- The Reserve Bank of India decided to stop issuing fresh licences for Full-Fledged Money Changers (FFMCs) and replace the framework with a new Forex Correspondent Model
- Under the revised structure, authorised dealers (banks) can appoint forex correspondents — including non-bank entities — to expand retail foreign exchange services to underserved areas
- Existing FFMC licences will continue to be honoured
- This mirrors the Business Correspondent (BC) model used to expand banking outreach
📋
📎 Read original source ↗Exam Note
• RBI: stops fresh FFMC licences; introduces Forex Correspondent Model (June 2026) • Forex Correspondents: non-bank entities appointed by authorised dealers to offer FX services • Mirrors BC (Business Correspondent) model used for banking outreach in rural areas • FFMC: Full-Fledged Money Changer; authorised to buy/sell foreign currency notes and TCs
